SOURCE: Trinity Bank

April 30, 2008 09:41 ET

Trinity Bank, N.A.: Positive Performance Continues in 2008 First Quarter

FORT WORTH, TX--(Marketwire - April 30, 2008) - Trinity Bank, N.A. (OTCBB: TYBT) today announced financial results for the first three months of 2008.

Results of Operations

Trinity Bank, N.A. reported Net Income After Taxes of $325,311 or $.28 per diluted common share for the first quarter of 2008, compared to $217,522 or $.19 per diluted common share for the first quarter of 2007, an increase of 50%.

Jeffrey M. Harp, President, stated, "Operating results for the first quarter of 2008 represent our fourteenth consecutive quarter of profit improvement. Loan volume increased 16% in spite of the payoff of two large loans (representing 7% of our total loans) in the first quarter. Deposits were up 37%, some of which was due to seasonal increases as customers accumulate funds for tax payments. We are pleased to report both Net Interest Income (up 18.1%) and Non-Interest Income (up 26.8%) continue to grow at a faster rate than our expenses (up 12.5%)."

Average for Quarter Ending

(in 000's)                     3-31-08     3-31-07      %
                              ---------   ---------   -----
Loans                         $  49,878   $  42,976    16.1%
Deposits                      $ 109,376   $  79,819    37.0%

Actual for Quarter Ending

Net Interest Income           $     901   $     763    18.1%
Non-Interest Income                 123          97    26.8%
Non-Interest Expense                548         487    12.5%
Loan Loss Provision                  45          45      --

Pre Tax Income                $     431   $     328    31.4%
Income Tax                    $     106   $     111    (4.5%)
Net Income                    $     325   $     217    49.8%

Trinity Bank, N.A. is a commercial bank that began operations May 28, 2003. For a full financial statement, visit Trinity Bank's website: www.trinitybk.com. Regulatory reporting format is also available at www.fdic.gov.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future financial conditions, results of operations and the Bank's business operations. Such forward-looking statements involve risks, uncertainties and assumptions, including, but not limited to, monetary policy and general economic conditions in Texas and the greater Dallas-Fort Worth metropolitan area, the risks of changes in interest rates on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest rate protection agreements, the actions of competitors and customers, the success of the Bank in implementing its strategic plan, the failure of the assumptions underlying the reserves to loan losses and the estimations of values of collateral and various financial assets and liabilities, that the cost of technological changes are more difficult or expensive than anticipated, the effects of regulatory restrictions imposed on banks generally, any changes in fiscal, monetary or regulatory policies and other uncertainties as discussed in the Bank's Registration Statement on Form SB-1 filed with the Office of the Comptroller of the Currency. Should one or more of these risks or uncertainties materialize, or hold these underlying assumptions prove incorrect, actual outcomes may vary materially from outcomes expected or anticipated by the Bank. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. The Bank believes it has chosen these assumptions or bases in good faith and that they are reasonable. However, the Bank cautions you that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The Bank undertakes no obligations to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless the securities laws require the Bank to do so.


                         TRINITY BANK N.A.
                            (Unaudited)
          (Dollars in thousands, except per share data)



                                                Quarter Ended
                                                  March 31           %
EARNINGS SUMMARY                               2008      2007   Change

Interest income                                1,581     1,479     6.9%
Interest expense                                 680       716    -5.0%
Net Interest Income                              901       763    18.1%

Provision for Loan Losses                         45        45     0.0%

Service charges on deposits                       25        24     4.2%
Other income                                      98        73    34.2%
Total Non Interest Income                        123        97    26.8%

Salaries and benefits expense                    285       257    10.9%
Occupancy and equipment expense                   87        83     4.8%
Other expense                                    176       147    19.7%
Total Non Interest Expense                       548       487    12.5%

Earnings before income taxes                     431       328    31.4%
Provision for income taxes                       106       111     0.0%
Net Earnings                                     325       217    49.8%

Basic earnings per share                        0.29      0.20    49.8%
Basic weighted average shares outstanding      1,109     1,109

Diluted earnings per share                      0.28      0.19    50.2%
Diluted weighted average shares outstanding    1,157     1,160



                                            Average for Quarter
                                              Ending March  31,      %
BALANCE SHEET SUMMARY                          2008      2007   Change

Total loans                                 $ 49,878  $ 42,976    16.1%
Total short term investments                  26,740    19,493    37.2%
Total investment securities                   41,033    31,151    31.7%

Earning assets                               117,651    93,620    25.7%

Total assets                                 123,192    99,017    24.4%

Noninterest bearing deposits                  20,814    18,258    14.0%
Interest bearing deposits                     88,562    61,561    43.9%

Total deposits                               109,376    79,819    37.0%

Shareholders' equity                          12,491    11,215    11.4%



                             TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)



                                   Average for Quarter Ending

BALANCE SHEET
 SUMMARY              March 31,   Dec. 31,  Sept. 30,  June 30,   March 31,
                          2008       2007       2007       2007       2007

Total loans          $   49,878 $   50,053 $   50,328 $   46,530 $   42,976
Total short term
 investments             26,740     27,011     22,927     24,676     19,493
Total investment
 securities              41,033     36,569     30,778     26,955     31,151

Earning assets          117,651    113,633    104,033     98,161     93,620

Total assets            123,192    119,646    109,844    103,889     99,017

Noninterest bearing
 deposits                20,814     23,620     21,396     20,411     18,258
Interest bearing
 deposits                88,562     82,504     75,546     69,933     61,561

Total deposits          109,376    106,124     96,942     90,344     79,819

Repurchase
 Agreements                 806        849        663      1,519      7,511

Shareholders' equity     12,491     12,078     11,725     11,486     11,215


                                          Quarter Ended

HISTORICAL EARNINGS
 SUMMARY              March 31,  Dec. 31,  Sept. 30,    June 30,  March 31,
                          2008      2007       2007       2007        2007


Interest income           1,581      1,745      1,721      1,602      1,479
Interest expense            680        803        804        752        716
Net Interest Income         901        942        917        850        763

Provision for Loan
 Losses                      45         45         45         45         45

Service charges on
 deposits                    25         28         25         28         24
Other income                 98         39         51         52         73
Total Non Interest
 Income                     123         67         76         80         97

Salaries and
 benefits expense           285        324        278        248        257
Occupancy and
 equipment expense           87         91         91         87         83
Other expense               176        115        161        178        147
Total Non Interest
 Expense                    548        530        530        513        487

Earnings before
 income taxes               431        434        418        372        328
Provision for income
 taxes                      106        129        147        128        111
Net Earnings                325        305        271        244        217


                             TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)




                                           Ending Balance
                          March 31,  Dec. 31., Sept. 30, June 30, March 31,
HISTORICAL BALANCE SHEET      2008      2007       2007     2007      2007

Total loans               $ 51,866  $ 50,545  $ 50,936  $ 48,392  $ 46,189
Total short term
 investments                27,818    25,654    24,235    24,256    18,417
Total investment
 securities                 37,740    43,561    31,685    27,907    32,817

Total earning assets       117,424   119,760   106,856   100,555    97,423

Allowance for loan losses      771       726       681       636       591
Premises and equipment       1,588     1,630     1,677     1,723     1,767
Other Assets                 4,491     4,572     5,126     4,780     3,776

Total assets               122,732   125,236   112,978   106,422   102,375

Noninterest bearing
 deposits                   20,820    24,423    22,487    19,963    19,028
Interest bearing deposits   87,874    87,352    77,319    73,738    63,807

Total deposits             108,694   111,775    99,806    93,701    82,835

Repurchase Agreements          714       820       732       756     7,595
Other Liabilities              585       379       494       388       543

Total liabilities          109,993   112,974   101,032    94,845    90,973

Shareholders' equity        12,739    12,262    11,946    11,577    11,402


                                           Quarter Ending
                         March 31,   Dec. 31, Sept. 30, June 30,  March 31,
NONPERFORMING ASSETS         2008       2007      2007     2007       2007

Nonaccrual loans          $      0  $      0  $      0  $      0  $      0
Restructured loans        $      0  $      0  $      0  $      0  $      0
Other real estate &
 foreclosed assets        $      0  $      0  $      0  $      0  $      0
Accruing loans past due
 90 days or more          $      0  $      0  $      0  $      0  $      0
Total nonperforming
 assets                   $      0  $      0  $      0  $      0  $      0


Total nonperforming
 assets as a percentage
 of loans and foreclosed
 assets                       0.00%     0.00%     0.00%     0.00%     0.00%



                             TRINITY BANK N.A.
                                (Unaudited)
              (Dollars in thousands, except per share data)




                                             Quarter Ending
ALLOWANCE FOR              March 31, Dec. 31, Sept. 30,  June 30, March 31,
 LOAN LOSSES                   2008     2007      2007      2007      2007

Balance at beginning of
 period                    $    726 $    681  $    636  $    591     $ 546
Loans charged off                 0        0         0         0         0
Loan recoveries                   0        0         0         0         0
  Net (charge-offs)
   recoveries                     0        0         0         0         0
Provision for loan losses        45       45        45        45        45
Balance at end of period   $    771 $    726  $    681  $    636     $ 591

Allowance for loan losses
 as a percentage of total
 loans                         1.49%    1.44%     1.34%     1.31%     1.28%
Allowance for loan losses
 as a percentage of
 nonperforming loans            N/A      N/A       N/A       N/A       N/A
Net charge-offs (recoveries)
 as a percentage of average
 loans                          N/A      N/A       N/A       N/A       N/A
Provision for loan losses
 as a percentage of average
 loans                         0.09%    0.09%     0.09%     0.09%     0.09%



                                              Quarter Ending
                            March 31, Dec. 31, Sept. 30, June 30, March 31,
SELECTED RATIOS                 2008     2007      2007     2007      2007

Return on average assets
 (annualized)                    1.06%   1.02%     0.99%    0.94%     0.88%

Return on average equity
 (annualized)                   10.41%  10.10%     9.25%    8.50%     7.74%

Average shareholders' equity
 to average assets              10.14%  10.09%    10.67%   11.06%    11.33%

Yield on earning assets (tax
 equivalent)                     5.58%   6.30%     6.64%    6.53%     6.32%

Cost of interest bearing
 funds                           3.04%   3.85%     4.22%    4.21%     4.15%

Net interest margin (tax
 equivalent)                     3.26%   3.44%     3.56%    3.46%     3.26%

Efficiency ratio                50.70%  52.53%    53.37%   55.16%    56.63%

End of period book value per
 common share                   11.49   11.06     10.77    10.44     10.28

End of period common shares
 outstanding                    1,109   1,109     1,109    1,109     1,109



                            TRINITY BANK N.A.
                              (Unaudited)
              (Dollars in thousands, except per share data)


                                            3 Months Ending
                               March 31, 2008            March 31, 2007

                                          Tax                       Tax
                                          Equiva-                   Equiva-
                          Average         lent      Average         lent
YIELD ANALYSIS            Balance  Yield  Yield     Balance  Yield  Yield

Interest Earning
 Assets:
Short term investment      26,740  4.01%    4.01%    19,493  5.31%    5.31%
Investment securities      25,847  4.40%    4.40%    31,151  4.46%    4.46%
Tax Free securities        15,186  3.37%    4.86%         0  0.00%    0.00%
Loans                      49,878  7.23%    7.23%    42,976  8.13%    8.13%

Total Interest Earning
 Assets                   117,651  5.38%    5.57%    93,620  6.32%    6.32%

Noninterest Earning
 Assets:
Cash and due from banks     3,805                     3,392
Other assets                2,479                     2,565
Allowance for loan
 losses                      (743)                     (560)

Total Noninterest
 Earning Assets             5,541                     5,397

Total Assets            $ 123,192                 $  99,017

Interest Bearing
 Liabilities:
Transaction and Money
 Market accounts           62,228  2.60%    2.60%    42,748  3.88%    3.88%
Savings deposits                0  0.00%    0.00%         0  0.00%    0.00%
Certificates and other
 time deposits             26,334  4.15%    4.15%    18,813  4.61%    4.61%
Other borrowings              806  1.99%    1.99%     7,511  4.47%    4.47%

Total Interest Bearing
 Liabilities               89,368  3.05%    3.05%    69,072  4.15%    4.15%

Noninterest Bearing
 Liabilities
Demand deposits            20,814                    18,258
Other liabilities             519                       472
Shareholders' Equity       12,491                    11,215

Total Liabilities and
 Shareholders Equity    $ 123,192                 $  99,017

Net Interest Income and
 Spread                            2.33%    2.52%            2.17%    2.17%

Net Interest Margin
 (includes non-interest
 bearing accounts)                 3.06%    3.25%            3.26%    3.26%




                             TRINITY BANK N.A.
                               (Unaudited)
              (Dollars in thousands, except per share data)


                                    March 31,           March 31,
                                      2008        %       2007        %
LOAN PORTFOLIO

Commercial and industrial             28,602     55.15%   26,481     57.33%
Real estate:
  Commercial                           8,158     15.73%    7,893     17.09%
  Residential                          6,872     13.25%    6,712     14.53%
  Construction and development         6,260     12.07%    3,372      7.30%
Consumer                               1,974      3.81%    1,731      3.75%

Total loans (gross)                   51,866    100.00%   46,189    100.00%

Unearned discounts                         0      0.00%        0      0.00%

Total loans (net)                     51,866    100.00%   46,189    100.00%


                                    March 31,           March 31,
                                        2007                2007
REGULATORY CAPITAL DATA
Tier 1 Capital                      $ 12,584            $ 11,440
Total Capital (Tier 1 + Tier 2)     $ 13,355            $ 12,031
Total Risk-Adjusted Assets          $ 65,643            $ 57,351
Tier 1 Ratio                           19.20%              19.95%
Total Capital Ratio                    20.30%              20.98%
Tier 1 Leverage Ratio                  10.20%              11.55%

OTHER DATA
Full Time Equivalent
 Employees (FTE's)                        15                  13

Stock Price Range
(For the Quarter Ended):
  High                              $  20.00            $  22.00
  Low                               $  20.00            $  18.00
  Close                             $  20.00            $  18.00

Contact Information

  • For Information contact:
    Richard Burt
    Executive Vice President
    Trinity Bank
    817-763-9966